1. Understand your responsibilities

As a business owner it is vital that you understand what the law asks of
you. Sole traders are required to carry out a range of tasks and fulfil
a range of responsibilities – particularly with regard to Self
Assessment tax. Make sure that you speak to an accountant or
solicitor if you are in any doubt about those responsibilities.

2. Learn time management skills

Effective time management is amongst the most important skills
available to a sole trader. You will have innumerable demands on your
time, and it is important that you come up with efficient ways to get
things done.

3. Learn when to outsource

You should recognise that you may not have the skills or time to do
everything yourself. In these cases outsourcing or delegating may be
the answer. Many business owners find it difficult to let go of
tasks – but if you are to get everything done, you need to learn when to
pass responsibility on to others.

5. Remember VAT

Even as a sole trader, you will still be obliged to register for VAT if
your turnover exceeds the VAT threshold. Alternatively, some business
owners choose to register voluntarily for financial reasons. Read more
about VAT registration.

6. Get insured

Insurance should be a priority for every business owner. A good
business insurance policy can help protect you against some of the
many risks you will face on a daily basis. Make sure that you read your
policy carefully, and understand any relevant exclusions.

7. Consider an accountant

While many sole traders choose to handle their accounts themselves,
others prefer to entrust this task to an accountant. This can help you
to take some of the stress out of the Self Assessment process.

8. Get selling ASAP

As a sole trader your personal income is dependent on your business
success. Unless you have big cash reserves (which you probably don’t
want to use up paying the mortgage anyway), it is important that you get
selling as soon as you can. Try to make yourself as visible as possible
– and don’t get sidetracked by little issues that can be solved further
down the line.

9. Invoice promptly…

Get into the habit of invoicing promptly. Make sure that you submit
invoices as soon as is relevant – for example as soon as work is
completed. Good bookkeeping software can help you to automate the
invoicing process.

10. …and chase payment

Don’t bank on clients or customers settling their invoices promptly.
Sadly, chasing payment takes up a big chunk of many self-employed
people’s time. Make sure that you follow up as soon as an invoice
becomes due, and at regular intervals thereafter. Read more on
preventing late payment.

11. Don't forget development

It can be easy to get sidetracked by fire fighting as a business owner –
and particularly as a sole trader. But it is important that you set
aside some time for business development. Make sure that you give
yourself the opportunity to think about ways to expand your business and
find new clients.

12. Consider branding

There is no necessity for you to use your own name, even if you are a
sole trader. Instead, you might want to consider developing a new
corporate identity. This can be particularly useful if you are trying to
give the impression of size to potential clients.

13. Don't write off incorporation

Finally, remember that you don’t have to stick with the sole trader
format forever. As your circumstances change, and as your business
expands, you might find that incorporation becomes a better option. Read
more about choosing a legal structure.

Looking for sole trader insurance?

With Simply Business you can build a single sole trader insurance policy combining the covers that are relevant to you. We’ll run you a quick, tailored quote right now online, and let you decide if we’re a good fit.